Inseego Reports Second Quarter 2017 Financial Results

Consolidated Revenues Increased by 8% Sequentially for the Second
Quarter

SaaS, Software and Services Revenues Increased Sequentially by 7% for
the Second Quarter

Global Subscribers Grew by 5% Sequentially and 19% Year-Over-Year for
the Second Quarter

SAN DIEGO--(BUSINESS WIRE)--
Inseego Corp. (Nasdaq: INSG) (the "Company"), a leading global provider
of mobile broadband hardware and software-as-a-service ("SaaS")
solutions for the Internet of Things ("IoT"), announced financial
results for the second quarter ended June 30, 2017.

"The second quarter results reflect the initial transitional phase of
the restructuring plan announced on June 7th," Dan Mondor,
President and CEO of Inseego Corp., commented. "We have established
detailed plans for each underlying initiative which we are implementing
in an effort to achieve a minimum annualized cost savings of $15
million, positive free cash flow and deleveraging of our balance sheet.
We expect the implementation of our overall restructuring plan, which
encompasses both operating expense reductions and gross margin
improvements, to be completed in the fourth quarter of 2017. We believe
this will yield improving second half results, with full realization
reflected in early 2018."

"Turning to our growth strategy, we have been working diligently and
meeting frequently with key customers to reassure them of our long-term
commitment to the MiFi business following the previously announced
termination of the sale. I'm pleased to report that our continued
technology innovation as well as our recent engagements led to a major
award of new business for our next generation gigabit LTE hotspot from a
Tier 1 North American service provider," Mondor added. "We have also
accelerated our engagements with prospective new MiFi, Ctrack and
Inseego North America customers in multiple geographies, which is
beginning to bear fruit. We expect to exit 2017 with significantly lower
operating expenses, improved gross margins and a growth strategy that is
focused on capturing new business that has higher returns and are less
capital-intensive. This would give us the flexibility to make targeted
investments designed to deliver the highest shareholder return."

Second Quarter 2017 Financial Highlights

The Company announced the following U.S. GAAP ("GAAP") financial results
for the second quarter of 2017:

Total revenue increased by 8% to $59.9 million compared to $55.4
million in the first quarter of 2017. On a year-over-year basis, total
revenues decreased by 5% from $62.8 million in the second quarter of
2016.

Revenues from the Company's Ctrack business were essentially unchanged
at $15.3 million compared to the first quarter of 2017. On a
year-over-year basis, Ctrack's revenues decreased by 3% from $15.7
million in the second quarter of 2016.

Revenue from SaaS, software and services increased by 7% to $14.9
million compared to $14.0 million in the first quarter of 2017. On a
year-over-year basis, SaaS, software and services revenue increased by
9% from $13.7 million in the second quarter of 2016. Revenue from
SaaS, software and services generated 25% of the Company's total
revenues in the second quarter of 2017, the same percentage as in the
first quarter of 2017 and increased from 22% of total revenues in the
second quarter of 2016.

Revenue from hardware products increased by 9% to $45.0 million in the
second quarter of 2017 compared to $41.4 million in the first quarter
of 2017. On a year-over-year basis, hardware revenues decreased by 8%
from $49.1 million in the second quarter of 2016.

Net loss was $12.0 million, or $0.21 per share, in the second quarter
of 2017, compared to a net loss of $16.1 million, or $0.28 per share,
in the first quarter of 2017 and a net loss of $2.7 million, or $0.05
per share, in the second quarter of 2016.

As of June 30, 2017, the Company had cash and cash equivalents of
$8.9 million, an increase from $6.4 million at March 31, 2017.

The Company also announced the following non-GAAP financial results for
the second quarter of 2017. A reconciliation of these non-GAAP financial
measures to the Company's GAAP financial results is included in the
tables accompanying this news release:

Non-GAAP gross margin was 32.1% in the second quarter of 2017,
compared to 31.8% in the first quarter of 2017 and 37.9% in the second
quarter of 2016. Non-GAAP gross margins for our SaaS, software and
services, hardware and Ctrack revenues were as follows:

Q2-2017

Q1-2017

Q2-2016

SaaS, software and services

75.9

%

67.7

%

74.2

%

Hardware

17.5

%

19.7

%

27.8

%

Ctrack

68.7

%

65.0

%

67.1

%

Non-GAAP operating expenses decreased by 12% to $20.2 million in the
second quarter of 2017, compared to $22.9 million in the first quarter
of 2017 and decreased by 17% from $24.3 million in the second quarter
of 2016.

Adjusted EBITDA increased to $1.1 million in the second quarter of
2017, compared to negative $3.2 million in the first quarter of 2017.
On a year-over-year basis, adjusted EBITDA decreased by 31% from
$1.7 million in the second quarter of 2016. Adjusted EBITDA
contributed by Ctrack was $2.3 million in the second quarter of 2017,
the same as in the first quarter of 2017 and a slight decrease from
$2.4 million in the second quarter of 2016.

Non-GAAP net loss for the second quarter of 2017 was $4.7 million, or
$0.08 per share, compared to a net loss of $8.1 million, or $0.14 per
share, for the first quarter of 2017 and a net loss of $3.4 million,
or $0.06 per share, for the second quarter of 2016.

Total consolidated subscribers increased by 5% from the end of the
first quarter to the end of the second quarter of 2017 and on a
year-over-year basis increased by 19%, with growth in both Ctrack and
Inseego North America subscribers:

Q2-2017

Q1-2017

Q2-2016

Ctrack Fleet Subscribers

198,000

189,000

174,000

Ctrack Non-Fleet Subscribers

254,000

239,000

215,000

Inseego North America Subscribers (formerly FW)

212,000

205,000

168,000

Total Consolidated Subscribers

664,000

633,000

557,000

Third Quarter Outlook

The following statements are forward-looking and actual results may
differ materially. Please see the section titled "Cautionary Note
Regarding Forward-Looking Statements" at the end of this news release. A
more detailed description of risks related to our business is included
in the reports filed by the Company with the Securities and Exchange
Commission (the "SEC"). Our guidance for the third quarter of 2017
reflects current business indicators and expectations as of the date of
this news release, including current exchange rates for foreign
currencies.

On June 7, 2017, the Company announced the appointment of a new Chief
Executive Officer and its strategic initiative to further reduce its
ongoing expenses, including operating expenses. The Company anticipates
that a majority of these cost savings will begin to be realized by the
end of the fourth quarter of 2017.

Inseego Consolidated

Third Quarter 2017 Outlook

Revenue

$57.0 million - $63.0 million

Adjusted EBITDA

$1.4 million - $2.4 million

Ctrack

Revenue

$15.3 million - $15.7 million

Non-GAAP Gross Margin

65% - 70%

Adjusted EBITDA

$2.3 million - $2.7 million

The Company's June 7, 2017 announcement also included guidance for
certain run-rate adjusted EBITDA levels by the end of 2017 and an
expectation that the Company would be positive free cash flow in the
fourth quarter of 2017. Management continues to execute on these cost
saving initiatives, but due to the timing of supply chain initiatives,
staggered cost reductions, and a non-recurring inventory liquidation,
full realization of this guidance will likely shift into early 2018.

Conference Call Information

Inseego will host a conference call and live webcast for analysts and
investors today at 5:00 p.m. ET. To access the conference call:

In the United States, call 1-844-881-0135

International parties can access the call at 1-412-317-6727

Inseego will offer a live audio webcast of the conference call, which
will be accessible from the "Investors" section of the Company's website
at investor.inseego.com. The webcast will
be archived for a period of 90 days. An audio replay of the conference
call will also be available beginning one hour after the call, through
August 21, 2017. To hear the replay, parties in the United States may
call 1-877-344-7529 and enter access code 10111131#. International
parties may call 1-412-317-0088 and enter the same code.

About Inseego Corp.

Inseego Corp. (Nasdaq: INSG) is a leading global provider of
MiFi®-branded intelligent wireless solutions for the worldwide mobile
communications market and software-as-a-service (SaaS) and solutions for
the Internet of Things (IoT). The Company sells its telematics solutions
under the Ctrack brand, including its fleet management, asset tracking
and monitoring, stolen vehicle recovery, and usage-based insurance
platforms. Inseego Corp. also sells business connectivity solutions and
device management services through Inseego North America
(formerly Feeney Wireless). The Company is headquartered in San Diego,
California. www.inseego.com
Twitter @inseego

Cautionary Note Regarding Forward-Looking Statements

Some of the information presented in this news release may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. In this context, forward-looking
statements often address expected future business and financial
performance and often contain words such as "may," "estimate,"
"anticipate," "believe," "expect," "intend," "plan," "project," "will"
and similar words and phrases indicating future results. The information
presented in this news release related to our outlook for the third
quarter ending September 30, 2017 and our future business outlook, the
future demand for our products, as well as other statements that are not
purely statements of historical fact, are forward-looking in nature.
These forward-looking statements are made on the basis of management's
current expectations, assumptions, estimates and projections and are
subject to significant risks and uncertainties that could cause actual
results to differ materially from those anticipated in such
forward-looking statements. We therefore cannot guarantee future
results, performance or achievements. Actual results could differ
materially from our expectations.

Factors that could cause actual results to differ materially from the
Company's expectations include (1) the future demand for wireless
broadband access to data and fleet management software and services; (2)
the growth of wireless wide-area networking and fleet management
software and services; (3) customer and end-user acceptance of the
Company's current product and service offerings and market demand for
the Company's anticipated new product and service offerings; (4)
increased competition and pricing pressure from participants in the
markets in which the Company is engaged; (5) dependence on third-party
manufacturers and key component suppliers worldwide; (6) unexpected
liabilities or expenses; (7) the Company's ability to introduce new
products and services in a timely manner; (8) litigation, regulatory and
IP developments related to our products or components of our products;
(9) dependence on a small number of customers for a significant portion
of the Company's revenues; and (10) the Company's plans and expectations
relating to acquisitions, divestitures, strategic relationships,
international expansion, software and hardware developments, personnel
matters and cost containment initiatives, including restructuring
activities and the timing of their implementation.

These factors, as well as other factors set forth as risk factors or
otherwise described in the reports filed by the Company with the SEC
(available at www.sec.gov),
could cause actual results to differ materially from those expressed in
the Company's forward-looking statements. The Company assumes no
obligation to update publicly any forward-looking statements for any
reason, even if new information becomes available or other events occur
in the future, except as otherwise required pursuant to applicable law
and our on-going reporting obligations under the Securities Exchange Act
of 1934, as amended.

Non-GAAP Financial Measures

Inseego Corp. has provided financial information in this news release
that has not been prepared in accordance with GAAP. Non-GAAP gross
profit, gross margin, operating expenses, adjusted EBITDA, net loss and
net loss per share exclude restructuring charges, net of recoveries,
share-based compensation expense, amortization of discount and issuance
costs related to the Company's convertible senior notes and the term
loan, an impairment charge related to certain product lines the Company
abandoned, net of recoveries from a related legal settlement, and
charges related to the Company's acquisition and divestiture activities,
net of related costs recovered. Adjusted EBITDA also excludes interest,
taxes, depreciation and amortization (unrelated to acquisitions, the
convertible senior notes and the term loan), charges related to the
termination of our revolving credit facility and net foreign currency
transaction gains and losses.

Non-GAAP gross profit, gross margin, operating expenses, adjusted
EBITDA, net loss and net loss per share are supplemental measures of our
performance that are not required by, or presented in accordance with,
GAAP. These non-GAAP financial measures have limitations as an
analytical tool and are not intended to be used in isolation or as a
substitute for gross profit, gross margin, operating expenses, net loss,
net loss per share or any other performance measure determined in
accordance with GAAP. We present non-GAAP gross profit, gross margin,
operating expenses, adjusted EBITDA, net loss and net loss per share
because we consider each to be an important supplemental measure of our
performance.

Management uses these non-GAAP financial measures to make operational
decisions, evaluate the Company's performance, prepare forecasts and
determine compensation. Further, management believes that both
management and investors benefit from referring to these non-GAAP
financial measures in assessing the Company's performance when planning,
forecasting and analyzing future periods. Share-based compensation
expenses are expected to vary depending on the number of new incentive
award grants issued to both current and new employees, the number of
such grants forfeited by former employees, and changes in the Company's
stock price, stock market volatility, expected option term and risk-free
interest rates, all of which are difficult to estimate. In calculating
non-GAAP gross profit, gross margin, operating expenses, adjusted
EBITDA, net loss and net loss per share, management excludes certain
non-cash and one-time items in order to facilitate comparability of the
Company's operating performance on a period-to-period basis because such
expenses are not, in management's view, related to the Company's ongoing
operating performance. Management uses this view of the Company's
operating performance for purposes of comparison with its business plan
and individual operating budgets and in the allocation of resources.

The Company further believes that these non-GAAP financial measures are
useful to investors in providing greater transparency to the information
used by management in its operational decision-making. The Company
believes that the use of non-GAAP gross profit, gross margin, operating
expenses, adjusted EBITDA, net loss and net loss per share also
facilitates a comparison of our underlying operating performance with
that of other companies in our industry, which use similar non-GAAP
financial measures to supplement their GAAP results.

In the future, the Company expects to continue to incur expenses similar
to the non-GAAP adjustments described above, and exclusion of these
items in the presentation of our non-GAAP financial measures should not
be construed as an inference that these costs are unusual, infrequent or
non-recurring. Investors and potential investors are cautioned that
there are material limitations associated with the use of non-GAAP
financial measures as an analytical tool. The limitations of relying on
non-GAAP financial measures include, but are not limited to, the fact
that other companies, including other companies in our industry, may
calculate non-GAAP financial measures differently than we do, limiting
their usefulness as a comparative tool.

Investors and potential investors are encouraged to review the
reconciliation of our non-GAAP financial measures contained within this
news release with our GAAP financial results.

Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income
(Loss)

(In thousands, except per share data)

(Unaudited)

Three Months EndedJune 30, 2017

Six Months EndedJune 30, 2017

Net Income (Loss)

Income (Loss)Per Share

Net Income (Loss)

Income (Loss) Per Share

GAAP net loss

$

(12,037

)

$

(0.21

)

$

(28,151

)

$

(0.49

)

Adjustments:

Share-based compensation expense(a)

888

0.02

1,979

0.03

Purchased intangibles amortization(b)

1,439

0.02

2,880

0.05

Acquisition- and divestiture-related charges, net(c)

(560

)

(0.01

)

1,763

0.03

Debt discount and issuance costs amortization

2,734

0.05

5,082

0.09

Restructuring charges, net of recoveries

1,443

0.02

2,252

0.04

Impairment of abandoned product line, net of recoveries(d)

1,407

0.03

1,407

0.03

Non-GAAP net loss

$

(4,686

)

$

(0.08

)

$

(12,788

)

$

(0.22

)

(a)

Includes share-based compensation expense recorded under ASC Topic
718.

(b)

Includes amortization of intangible assets purchased through
acquisitions.

(c)

Includes professional fees, including legal and due diligence
related to acquisitions and divestitures, and other charges, net of
related costs recovered.

(d)

Includes the additional write down of the value of certain inventory
related to product lines the Company abandoned during the fourth
quarter of 2016, net of recoveries from a related legal settlement.

See "Non-GAAP Financial Measures" for information regarding our
use of Non-GAAP financial measures.

INSEEGO CORP.

Reconciliation of GAAP Operating Costs and Expenses to Non-GAAP
Operating Costs and Expenses

Three Months Ended June 30, 2017

(In thousands)

(Unaudited)

GAAP

Share-based compensation expense(a)

Purchased intangibles amortization(b)

Restructuring charges, net of recoveries

Impairment of abandoned product line, net of recoveries(c)

Acquisition- and divestiture-related charges, net(d)

Non-GAAP

Cost of net revenues

$

42,684

$

41

$

534

$

—

$

1,407

$

—

$

40,702

Operating costs and expenses:

Research and development

5,400

117

—

—

—

—

5,283

Sales and marketing

7,002

87

—

—

—

—

6,915

General and administrative

8,094

643

—

—

—

(560

)

8,011

Amortization of purchased intangible assets

905

—

905

—

—

—

—

Restructuring charges, net of recoveries

1,443

—

—

1,443

—

—

—

Total operating costs and expenses

$

22,844

847

905

1,443

—

(560

)

$

20,209

Total

$

888

$

1,439

$

1,443

$

1,407

$

(560

)

(a)

Includes share-based compensation expense recorded under ASC Topic
718.

(b)

Includes amortization of intangible assets purchased through
acquisitions.

(c)

Includes the additional write down of the value of certain inventory
related to product lines the Company abandoned during the fourth
quarter of 2016, net of recoveries from a related legal settlement.

(d)

Includes professional fees, including legal and due diligence
related to acquisitions and divestitures, and other charges, net of
related costs recovered.

See "Non-GAAP Financial Measures" for information regarding our
use of Non-GAAP financial measures.

INSEEGO CORP.

Reconciliation of GAAP Operating Costs and Expenses to Non-GAAP
Operating Costs and Expenses

Six Months Ended June 30, 2017

(In thousands)

(Unaudited)

GAAP

Share-based compensation expense(a)

Purchased intangibles amortization(b)

Restructuring charges, net of recoveries

Impairment of abandoned product line, net of recoveries(c)

Acquisition- and divestiture-related charges, net(d)

Non-GAAP

Cost of net revenues

$

81,887

$

95

$

1,071

$

—

$

1,407

$

822

$

78,492

Operating costs and expenses:

Research and development

11,689

316

—

—

—

—

11,373

Sales and marketing

14,159

216

—

—

—

—

13,943

General and administrative

20,131

1,352

—

—

—

986

17,793

Amortization of purchased intangible assets

1,809

—

1,809

—

—

—

—

Restructuring charges, net of recoveries

2,252

—

—

2,252

—

—

—

Total operating costs and expenses

$

50,040

1,884

1,809

2,252

—

986

$

43,109

Total

$

1,979

$

2,880

$

2,252

$

1,407

$

1,808

(a)

Includes share-based compensation expense recorded under ASC Topic
718.

(b)

Includes amortization of intangible assets purchased through
acquisitions.

(c)

Includes the additional write down of the value of certain inventory
related to product lines the Company abandoned during the fourth
quarter of 2016, net of recoveries from a related legal settlement.

(d)

Includes professional fees, including legal and due diligence
related to acquisitions and divestitures, and other charges, net of
related costs recovered.

See "Non-GAAP Financial Measures" for information regarding our use
of Non-GAAP financial measures.

INSEEGO CORP.

Reconciliation of GAAP Loss before Income Taxes to Adjusted EBITDA

(In thousands)

(Unaudited)

Three Months EndedJune 30, 2017

Six Months EndedJune 30, 2017

Loss before income taxes

$

(11,481

)

$

(27,290

)

Depreciation and amortization(a)

3,583

7,662

Share-based compensation expense(b)

888

1,979

Restructuring charges, net of recoveries

1,443

2,252

Impairment of abandoned product line, net of recoveries(c)

1,407

1,407

Acquisition- and divestiture-related charges, net(d)

(560

)

1,305

Interest expense, net(e)

4,881

9,037

Other expense, net(f)

985

1,628

Adjusted EBITDA

$

1,146

$

(2,020

)

(a)

Includes depreciation and amortization charges, including
amortization of intangible assets purchased through acquisitions.

(b)

Includes share-based compensation expense recorded under ASC Topic
718.

(c)

Includes the additional write down of the value of certain inventory
related to product lines the Company abandoned during the fourth
quarter of 2016, net of recoveries from a related legal settlement.

(d)

Includes professional fees, including legal and due diligence
related to acquisitions and divestitures, and other charges, net of
related costs recovered.

(e)

Includes the amortization of debt discount and issuance costs
related to the convertible senior notes and term loan.